TIDMEXPN
RNS Number : 4099S
Experian plc
14 July 2022
news release
Trading update, first quarter
14 July 2022 -- Experian plc, the global information services
company, today issues an update on trading for the first three
months ended 30 June 2022.
Brian Cassin, Chief Executive Officer, commented:
"We grew strongly in Q1, in line with our expectations,
underpinned by our portfolio diversity and growth initiatives.
Total revenue growth was 7% at actual exchange rates and 9% at
constant exchange rates. Organic revenue growth was 8%.
"Our expectations for the full year are unchanged. We expect
organic revenue growth in the range of 7-9%, total revenue growth
in the range of 8-10% and modest margin accretion, all at constant
exchange rates."
% change in revenue from ongoing activities year-on-year for the
three months ended
30 June 2022
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange rates(1) exchange rates exchange rates
-------------------- ------------------- ---------------- ----------------
North America 8 8 7
Latin America 30 23 18
UK and Ireland (6) 5 5
EMEA/Asia Pacific (8) 1 1
------------------- ---------------- ----------------
Total global 7 9 8
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months
ended 30 June 2022
Organic revenue growth Data Decisioning B2B(3) Consumer Total
% (2) Services
North America 4 6 5 13 7
Latin America 13 20 15 42 18
UK and Ireland 8 2 6 0 5
EMEA/Asia Pacific 1 2 1 n/a 1
----- ------------ ---------- ------
Total global 6 6 6 13 8
------------------------ ----- ------------ ------- ---------- ------
2 Ongoing activities only, at constant exchange rates.
3 B2B = Business-to-Business segment which consists of Data and
Decisioning business sub-divisions.
Business mix including % change in organic revenue year-on-year
for the three months ended 30 June 2022
Segment Business unit % of Group Q1 organic
revenue(4) revenue
growth %(5)
------------------------------ ------------ -------------
North America 65% 7%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 24% 3%
--------------------
- CI / BI Bureaux, excluding
mortgage 20% 11%
- Mortgage 4% (31)%
Automotive 4% 4%
Targeting 3% 11%
--------------------------------------------------- ------------ -------------
Decisioning Health 8% 5%
--------------------
DA / Other 5% 7%
--------------------------------------------------- ------------ -------------
Consumer Services Consumer Services 21% 13%
-------------------- ------------------------------ ------------ -------------
Latin America 13% 18%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 8% 14%
--------------------
Other 1% 5%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 2% 20%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 2% 42%
-------------------- ------------------------------ ------------ -------------
UK and Ireland 14% 5%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 6% 9%
--------------------
Targeting / Auto 1% 3%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 4% 2%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 3% 0%
-------------------- ------------------------------ ------------ -------------
EMEA/Asia Pacific 8% 1%
---------------------------------------------------- ------------ -------------
Total global 100% 8%
---------------------------------------------------- ------------ -------------
4 Percentage of Group revenue from ongoing activities calculated
based on FY22 revenue at actual exchange rates.
5 Ongoing activities only, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA =
Decision Analytics.
North America - 65% of Group revenue(4)
North America delivered organic revenue growth of 7%, with
ongoing strength in bureau volumes (excluding mortgage), good
demand for analytics and software, expansion in the key verticals
of health, targeting, automotive and verification services, and
continued momentum in Consumer Services. Respectively, growth was
5% and 13% across B2B and Consumer Services. Total revenue growth
was 8% including acquisition contributions from verification
services and from insurance marketplaces.
In B2B, our clients continue to invest in developing their
digital platforms, helping to drive growth across all major
business units. In financial services most clients continue to
focus on new credit issuance and investment in their digital
infrastructure. Bureau volumes were strong, excepting mortgage. Our
analytical and decisioning suite performed well, with good demand
for analytics, and growth in decisioning software and across fraud
and identity management. Our major verticals also performed
robustly.
Consumer Services has started the year strongly, delivering
growth of 13%. Our credit marketplace performed very well,
reflecting our ability to deliver large audiences to our lending
partners as our free membership base reached 55m. There was
particularly good growth in cards and loans, with strength in both
demand and supply of credit. As expected, paid membership was
stable.
Latin America - 13% of Group revenue (4)
Latin America maintained its strong trajectory delivering
organic revenue growth of 18%. At constant currency, total revenue
growth was 23%, including contributions from acquisitions in fraud
and identity management, and in Consumer Services, and from our new
bureau in Chile.
B2B organic revenue growth was 15%. In Brazil, bureau volume
growth was strong, driven by client adoption of our positive data
scores, features and attributes. The number of installations of
Experian Ascend also increased and we continue to see good take-up
of our cloud-enabled decisioning platforms. We also saw growing
contributions from fraud and identity management, our small and
medium enterprise channel and our new agribusiness vertical.
Consumer Services delivered organic revenue growth of 42%. Free
consumer memberships in Brazil rose to 73m, whilst our credit
collection marketplace Limpa Nome, and our credit comparison
marketplace both performed strongly.
UK and Ireland - 14% of Group revenue (4)
Organic and total constant currency revenue growth in the UK and
Ireland was 5%.
While the macroeconomic outlook in the UK has softened, our UK
and Ireland B2B operations have been resilient delivering organic
growth of 6%. This reflects strong new business traction and
particularly good progress across our consumer credit, business
credit and fraud and identity management activities. Our clients
continue to invest in new credit origination and bureau volumes
have been good. We continue to progress our innovation strategy,
including rapid progress in building a new capability in income and
employment verification.
Organic revenue in Consumer Services was flat, with strong
growth in transaction volumes across our credit comparison
marketplace, offset by moderation in our premium subscription
services as we lapped a strong prior year comparable. Free
memberships were 11m.
EMEA/Asia Pacific - 8% of Group revenue (4)
Organic revenue growth and total revenue growth at constant
exchange rates across EMEA/Asia Pacific was 1%. Overall performance
was affected by weak macroeconomic conditions in some markets. We
continue to execute on our strategy to concentrate on strategic
markets where we can drive scale while also enhancing operating
efficiency.
Future events
Experian will release its half year results on Wednesday, 16
November 2022.
Contact:
Experian
Investor +44 (0)20 3042
Nadia Ridout-Jamieson queries 4278
Gerry Tschopp Media queries
Tulchan
Graeme Wilson, Louise Male and +44 (0)20 7353
Guy Bates 4200
This announcement is available on the Experian website at
www.experianplc.com . There will be a conference call today to
discuss this update at 9.00am (UK time), which will be broadcast
live on the website with a recording available later.
All financial information in this trading update is based on
unaudited management accounts. Certain statements made in this
trading update are forward-looking statements. Such statements are
based on current expectations and are subject to a number of risks
and uncertainties that could cause actual events or results to
differ materially from any expected future events or results
referred to in these forward-looking statements.
Neither the content of the Company's website, nor the content of
any website accessible from hyperlinks on the Company's website (or
any other website), is incorporated into, or forms part of, this
announcement.
About Experian
Experian is the world's leading global information services
company. During life's big moments - from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers - we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have 20,600 people operating across 43 countries and every
day we're investing in new technologies, talented people, and
innovation to help all our clients maximise every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
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